Vienna, Austria-based integrated oil, gas and chemicals company OMV is taking the next step towards scaling up the in-house developed ReOil chemical recycling technology it has been working on for over a decade. The patented technology converts plastic waste into synthetic feedstock, under moderate pressure and normal refinery operating temperatures. OMV has now announced that it has reached the final investment decision on a project that will see the construction of a demo-scale chemical recycling plant, based on this proprietary ReOil technology, at its Schwechat refinery.
“With the decision to build a demo plant, we are now taking the next step toward circular economy and thus toward reducing our CO2 emissions,” said Alfred Stern, CEO and Chairman of the Executive Board of OMV Aktiengesellschaft.
A ReOil pilot plant has already been operating in the Schwechat refinery since 2018, capable of processing 100 kg of used plastics into 100 litres of synthetic feedstock per hour and, by providing valuable information on improvements in the thermal cracking process, has supported the further scale up of the ReOil technology. Aiming to, together with Borealis, becoming a leader in the circular economy of plastics, the company ultimately plans to build an industrial-scale plant with a processing capacity of up to 200,000 t/year by 2026.
The present FID covers the construction of a ReOil demo plant with a design capacity of 16,000 t/year, likewise to be built at the OMV site in Schwechat, Austria. Production startup is planned for early 2023. To finance this project, OMV has entered into its first-ever green loan agreement, which is ibased on a green and project-specific external due diligence appraisal, so-called Second Party Opinion, and a project-specific green financing framework.
At the plant, plastic waste consisting mainly of polyolefins not fit to be mechanically recycled will be chemically recycled into a synthetic feedstock suitable for the production of new food- and medical grade plastics. The waste, comprised of food packaging, plastic cups, lids from takeaway coffee and confectionery packaging, will be sourced in Austria.
The plant will be fully integrated within the petrochemical site at the Schwechat refinery, creating around 50 new jobs. It represents an important step toward developing ReOil into a commercially viable, industrial-scale chemical recycling technology with a processing capacity of up to 200,000 t/year by 2026.
Like the pilot plant, the ReOil demo plant will be fully ISCC PLUS certified. ISCC PLUS is a sustainability standard well-recognized by all stakeholders for recycled and bio-based materials, providing traceability along the supply chain and verifying that companies meet environmental and social standards.